(The Center Square) – Gov. Gretchen Whitmer presented a new $80 billion budget for 2025 touting free programs but failed to mention how to fund five new programs.
Whitmer said the word “free” six times but the only new funding mechanism mentioned was $670 million from paying off Michigan Public School Employees Retirement System liabilities early.
Whitmer called on lawmakers to fund preschool for all 4-year-olds, two years of free community college for all high school graduates and allocate $60 million Innovation Fund to subsidize Michigan companies.
“Together, let’s lower costs for working families, deliver the Michigan Guarantee to offer every Michigan child a free public education from pre-K through community college, save family caregivers thousands on their taxes, and power our economic and workforce development to build and lead the future,” Whitmer said.
The second-term governor proposed $500 million to the Strategic Outreach Attraction Reserve fund, a $100 million deposit into the Budget Stabilization Fund, and a $100 million for a research and development tax credit.
About 47% of the proposed General Fund budget would fund Health and Human Services while 20% would fund public safety.
The budget would cut spending by $1 billion from the 2024 budget or about a 1.58% decrease. The new budget proposes a general fund of $14.3 billion and a school aid budget totaling $19 billion.
State Budget Director Jen Flood said the investments would make a “real difference” in people’s lives, from schools to bridges to public safety.
About $300 million would fund student mental health and school safety needs, $370 million to support school operations through a 2.5% increase in base per-pupil funding that equates to an additional $241 per student, for a total of $9,849 per pupil.
The budget proposes $251.2 million for literacy coaches, $200 million to provide breakfast and lunch to Michigan’s 1.4 million public school students and $200 million for tutoring.
Taxpayer-funded expansion of Pre-K cost $159 million and suggested spending $175 million to fund teacher education programs, $127 million for expanded support for special education students, and $125 million to provide a 5% increase in funding to support academically at-risk students, English language learners, career and technical education students and students in rural school districts.
Whitmer proposed $37.5 million to create the Caring for MI Family Tax Credit and $25 million for the MI Vehicle Rebate to provide up to a $2,500 rebate for buying a union-made electric vehicle.
The budget proposes $80 million to clean up contaminated sites, $25 million for the Build Ready Sites program, and $20 million to fund the Pure Michigan advertising campaign.
Whitmer’s proposed infrastructure plan includes $700 million to authorize the final tranche of the Rebuilding Michigan Plan, $247.6 million to improve state and local roads, highways, and bridges, and $150 million to support local bridges.
Additionally, $27.5 million would provide a 5% increase in ongoing statutory revenue sharing to help counties, cities, villages, and townships.
